How will they reach production of 500 per day when they are at...

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12/07/17

17:21

Post #: 25826601
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Originally posted by orion123 ↑

The plethora of vitriol issuing against FPL prompts me to issue a reply in support of it and its' directors. 1.The company is still viable and in funds.
2. The company owns an entire oilfield.

Which makes less money than it costs to run

3. The company is beginning to receive an income from product sales.

Which are a fraction of ongoing corp costs and thus they are losing money every day week month and year
Hi
4. The executive directors are personally manning the drilling rig. I know what this takes as I've drilled oil wells, cemented them, fracked them, acidized them, serviced them, etc. etc.

Amazing - and you still back these guys having worked on the industry

5. They've survived the greatest downturn in the oil industry in the recent history of the business.
The have destroyed about 99% of shareholder value - that's as close to bankrupt as one can get
6. They are "virtually" debt free as they have more cash than debt.

Not really
They had taken a 900k debt, as of last quarter had more debtors than creditors by more than 200k and the placement funds of 1.7m are gross . Maybe just enough to drill one well but i think you will get another raising before result
7. They have enough funds to progress the company.
Should the next well they drill be a tad above par and produce a few hundred bbls/d it would move the company to a reasonably solid footing. Should it not then that would simply be another setback to overcome.

No they don't have enough funds to progress anything , at best one well and two months corp costs

As the company doesn't have a debt to repay (perhaps the small one pre mentioned) all nett income goes to the bottom line. So, speculating (because that's what I did when I bought) if FPL manages to reach a production of 500bbls/d that would be roughly at a conservative profit of $10/bbl some $2 million p/a and then there's the possibility of gas sales. Also as the drilling heads west the prospects appear better. Then as funds permit there are the two lower horizons to explore. They may just have something quite interesting as they have greater maturity. If you're a shareholder I suggest you back your company and its' directors, if you're not a shareholder I suggest you get out of the manger.

Expand

How will they reach production of 500 per day when they are at 100 . Even if you got your 2 m cash flow from oil production ( no chance ) the costs to run the company would consume all that . Even if you did get an IP of 400 , within 2 months it will be 200. To get 500 average you need to drill ability three rippers

Orion
See factual rebuttal above

FPL Price at posting: 2.1¢ Sentiment: None Disclosure: Not Held
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How will they reach production of 500 per day when they are at...

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